Update on Good Cause Eviction Law Compliance and DHCR Guidance

Since August 18, 2024, property owners across New York State have been required to provide tenants with a Good Cause Eviction (GCE) Notice when offering new leases, renewals, or notices of non-renewal. This notice requirement applies even to owners and properties that are exempt from the GCE law itself and must be included in all lease and renewal agreements, as well as any predicate notices.

Recent Updates from DHCR

The New York State Division of Housing and Community Renewal (DHCR) recently issued updated guidance and materials related to the GCE law, including:

• A revised list of municipalities that have adopted the GCE law;

• Updated Consumer Price Index (CPI) data used to calculate the local rent increase standard, which determines when rent increases may be presumed unreasonable;

• Revised Fair Market Rent (FMR) thresholds for determining exemptions under the 245% FMR rule.

  
  

For New York City, DHCR has published a CPI of 3.79%, resulting in a local rent standard of 8.79% (3.79% CPI + 5%). Rent increases above this threshold may be viewed as presumptively unreasonable under the law. This marks a slight reduction from the prior threshold.

DHCR also adjusted the high-rent exemption thresholds downward for NYC based on its current interpretation of the 245% HUD FMR exemption rule.

What Landlords Should Know

• GCE compliance is required in lease offers, renewals, and termination notices—even if your property is exempt.

• The local rent standard is subject to annual updates based on CPI data published by the U.S. Bureau of Labor Statistics. A new CPI figure is expected in mid-July, which may slightly lower the rent increase threshold.

• Annual DHCR notices, due by August 1 each year, will include the latest CPI and FMR figures, as well as a list of participating municipalities outside NYC.

• DHCR has released three formal GCE-related notices to date: August 1, 2024; February 19, 2025; and April 23, 2025.

  
  

Stay Compliant

Property owners should be vigilant about incorporating the most current GCE notices into their leasing procedures and reviewing any planned rent increases against the local rent standard to reduce legal exposure.

Sandman Malin PLLC advises clients on Good Cause Eviction compliance and related regulatory obligations. Please contact us to ensure your lease documentation and rent practices remain aligned with the latest legal requirements.